H GRADE A Q&A
In order to secure the services of any resource for your business firm, in general,
you must be prepared to: - (correct answer)offer enough to bid that resource away from
its next best opportunit
Suppose you could prepare your own tax return in 10 hours, or you could hire a
specialist to prepare it for you in 3 hours. You value your time at $20.00 an hour.
The tax specialist will charge you $100.00 an hour. The opportunity cost of hiring
the tax specialist is: - (correct answer)u losing 100 but the opportunity cost is 300
300
Which of the following is most likely to be a fixed cost for the City Slicker's Dude
Ranch? - (correct answer)hay for the horses is not the answer it is the lodge where the
guests stay
the lodge where the guests stay
4. A variable cost is one that changes: - (correct answer)xxas output changes
5. Barbara owns a small shop where dresses are made. At the end of a given
month, she has 250 dresses. Her expenses for the month are $1,000 for rent,
$6,000 for wages, $1,500 for fabric and thread. Her total variable costs for the
month are: - (correct answer)rent is alwasy fixed she totally pays8500 but the other
7500 is varuiable tyhe answer$ 7500
In the short run, total fixed cost will: - (correct answer)xxremain constant
, Which economic concept explains why a large drugstore chain can produce at a
lower average cost than Whoville Pharmacy, an individually owned drugstore? - (correct
answer)xxeconomies of scale
The golden rule of profit maximization states that any firm maximizes profit by
producing where: - (correct answer)xxmarginal revenue equals marginal cost
Let us suppose Childress's, a local supplier for chili and beer, has the following
revenue and cost structure:
Total revenue $7,000 per week
Total variable cost $6,000 per week
Total fixed cost $2,000 per week - (correct answer)xxChildress's should shut down in
the short run because revenue 7000 biggger than variable cost 6000
10. The Hound Dog Bus Company contemplates expanding its Virginia operations by
offering service from Fairfax to Arlington. The total cost of the trip would be
$120, of which 80 is fixed cost, which it has already paid. The firm expects to
earn $60 in revenue from the trip. The Hound Dog Bus Company should: - (correct
answer)xx. offer this service because the added revenue exceeds the added cost of this
service variable cost is 120-80 or 40 ,$60 is the revenue larger than 40
Imagine you own a machine that produces perfectly authentic and legal $100
bills. You would use this machine until - (correct answer)until the legal fees and ink
machine and electicity cost you 100 dollars per benjamin you make you should stop
the marginal cost was $100
12. Perfectly competitive firms are sometimes called price makers because they
In order to secure the services of any resource for your business firm, in general,
you must be prepared to: - (correct answer)offer enough to bid that resource away from
its next best opportunit
Suppose you could prepare your own tax return in 10 hours, or you could hire a
specialist to prepare it for you in 3 hours. You value your time at $20.00 an hour.
The tax specialist will charge you $100.00 an hour. The opportunity cost of hiring
the tax specialist is: - (correct answer)u losing 100 but the opportunity cost is 300
300
Which of the following is most likely to be a fixed cost for the City Slicker's Dude
Ranch? - (correct answer)hay for the horses is not the answer it is the lodge where the
guests stay
the lodge where the guests stay
4. A variable cost is one that changes: - (correct answer)xxas output changes
5. Barbara owns a small shop where dresses are made. At the end of a given
month, she has 250 dresses. Her expenses for the month are $1,000 for rent,
$6,000 for wages, $1,500 for fabric and thread. Her total variable costs for the
month are: - (correct answer)rent is alwasy fixed she totally pays8500 but the other
7500 is varuiable tyhe answer$ 7500
In the short run, total fixed cost will: - (correct answer)xxremain constant
, Which economic concept explains why a large drugstore chain can produce at a
lower average cost than Whoville Pharmacy, an individually owned drugstore? - (correct
answer)xxeconomies of scale
The golden rule of profit maximization states that any firm maximizes profit by
producing where: - (correct answer)xxmarginal revenue equals marginal cost
Let us suppose Childress's, a local supplier for chili and beer, has the following
revenue and cost structure:
Total revenue $7,000 per week
Total variable cost $6,000 per week
Total fixed cost $2,000 per week - (correct answer)xxChildress's should shut down in
the short run because revenue 7000 biggger than variable cost 6000
10. The Hound Dog Bus Company contemplates expanding its Virginia operations by
offering service from Fairfax to Arlington. The total cost of the trip would be
$120, of which 80 is fixed cost, which it has already paid. The firm expects to
earn $60 in revenue from the trip. The Hound Dog Bus Company should: - (correct
answer)xx. offer this service because the added revenue exceeds the added cost of this
service variable cost is 120-80 or 40 ,$60 is the revenue larger than 40
Imagine you own a machine that produces perfectly authentic and legal $100
bills. You would use this machine until - (correct answer)until the legal fees and ink
machine and electicity cost you 100 dollars per benjamin you make you should stop
the marginal cost was $100
12. Perfectly competitive firms are sometimes called price makers because they
